The German think tank IFO stated that due to tightening global controls on rare earth components, raw material shortages for German electronics and optical product manufacturers worsened in October. According to the think tank's data, approximately 10.4% of enterprises in the industry reported supply bottlenecks in October, up from 7.0% in July and 3.8% in April. Klaus Wohlrabe, Head of Surveys at IFO, said, "Rare earth control measures and trade restrictions are having a negative impact. If this trend continues and worsens, it will also adversely affect economic growth." IFO reported that across the entire manufacturing sector, only 5.5% of enterprises reported supply issues. German industry continues to face severe supply chain disruptions, and European policymakers are attempting to reduce dependence on critical raw materials through supply chain diversification and increasing domestic rare earth production, but this will take time.
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